Apple inc.

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its a study of apple's swot ,goals ,mission and vision

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Apple inc.

  1. 1. Apple Inc. “How did Steve Jobs changed the world” STUDY OF: INTRODUCTION SWOT MISSION VISION GOALS FINDINGS & RECOOMMENDATIONS “If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on.”STEVE JOBS DONE BY: ZYAD AHMED DIRAR FACULTY OF BUSINESS ADMIN. BU-2011-014 UMST, SUDAN
  2. 2. Overview of the Organization The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977. The word "Computer" was removed from its name on January 9, 2007, the same day Steve Jobs introduced the iPhone, reflecting its shifted focus towards consumer electronics. Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Apple is the world’s-second largest information company by revenue after Samsung Electronics, and the world’s-Third largest phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. However, the company has received criticism for its contractor’s labor practices, and for Apple's own environmental and business practices. As of May 2013, Apple maintains 408 retail stores in fourteen countries as well as the online Apple Store and iTunes Store, the latter of which is the world's largest music retailer.
  3. 3. Profile of the Organization Founded: April 1, 1976 Founder(s): Steve Jobs : Steve Wozniak : Ronald Wayne Type: Public Industry: Computer Hardware: Computer Software : Consumer Electronics : Digital Distribution Headquarters: Apple Campus, 1 Infinite Loop, Cupertino California, U.S. Number of locations: 406 retail stores Area served: Worldwide Key people(s): Tim Cook (CEO) : Arthur D. Levinson (Chairman) : Steve Jobs(Founder, former CEO) Revenue: US$ 156.508 billion (2012) Operating income: US$ 055.241 billion (2012) Net income: US$ 41.733 billion (2012) Total assets: US$ 176.064 billion (2012) Employees: 80,000 (2013)
  4. 4. Issues of the Organization Increasing competition Apple’s key competitors are Google, Samsung, Microsoft and many more. Google’s Android has more market share than Apple’s iOS and in the phone making Apple is facing strong competition from Samsung. Criticism for Apple maps Apple launched its Google Maps replacement and while that’s not much times to overhaul such a massive undertaking. Apple Maps were a catastrophe as they majority of the times were not accurate and directed its users or stranded them at some unknown place. Patent War
  5. 5. SWOT Analysis Strengths Weaknesses Customer loyalty combined with expanding closed ecosystem Apple is a leading innovator in mobile device technology Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt) Brand reputation Retail stores Strong marketing and advertising teams High price Incompatibility with different OS Decreasing market share Patent infringements Further changes in management Defects of new products Long-term gross margin decline Opportunities Threats High demand of iPod mini and phone 5 it launch Emergence of the new provider of application processors Growth of tablet and Smartphone markets Obtaining patents through acquisitions Damages from patent infringements Strong growth of mobile advertising market Increasing demand for cloud based services Rapid technological change 2013 tax increases Rising pay levels for Falcon workers Breached IP rights Price pressure from Samsung over key components Strong dollar Android OS growth Competitors moves in online music market
  6. 6. Strengths 1.
Customer loyalty combined with expanding closed ecosystem. While at first Apple’s closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a full range of apps, software and products that are interlinked and support each other. Second, new products and supplements will be released soon (it), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed ecosystem and customers’ loyalty increases firm’s competitive advantage. 2.Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market. 3.Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt). Apple’s financial performance is one of the best among many companies. Currently Apple has no debt and is not directly affected by interest rates or credit markets.
  7. 7. Weaknesses 1.High price. Apple’s products cost much more than its competitors devices. Some critics argue that the price is not justified. When there’s such a fierce competition, Apple products price becomes a weakness because consumers can easily opt for similar quality but lower price products. 2.Incompatibility with different OS. The ions and OS X are quite different from other OS and uses software that is unlike the software used in Microsoft OS. Due to such differences, both in software and hardware, users often choose to stay with their accustomed software and hardware (Microsoft OS and Intel hardware). 3.Decreasing market share. The less market share Apple has, the less it can influence its potential customers and persuades them to jump into using Apple’s closed ecosystem products.
  8. 8. Opportunities 1.High demand of iPod mini and phone 5. IPod mini sales will increase Apple’s market share in the tablet market and, will strengthen firm’s competitive advantage. 2.Itv launch. iTV launch will support Apple TV sales and the products’ ecosystem. 3.Growth of tablet and smartphone markets. Growth of tablet and smartphone markets is a good opportunity to expand firm’s share in these markets. Threats 1.2013 tax increases. Tax increases in USA in 2013 will negatively affect Apple. 2.Rising pay levels for Foxconn workers. Pay levels for Foxconn’s workers already rose 3 times from 2010 to 2012. Foxconn is the main manufacturer of Apple products and the rising pay level for Foxconn’s workers will likely raise the prices for Apple products. 3.Breached IP rights. The companies that breach Apple patents might not be discovered soon and may benefit from it, while weakening Apple at the same time.
  9. 9. Findings & Recommendations Apple cannot market iPhones in Brazil because another company owns the trademark. The Brazilian telecommunications company IGM Electronica owns the brand Gradiente, which filed for exclusive rights to the name “iPhone” in 2000, before Apple had produced its iPhone. It took seven years but eventually the rights were granted, and the G-Gradiente iPhone was launched in 2007. According the Financial Post, Apple Inc. grew richer than Uncle Sam, having more cash on hand than the entire U.S. had spending room. This was due to the debt ceiling crisis of July 2011. Apple Inc. boasted cash reserves of $75.88 billion while Washington had an operating balance of $73.77 billion. A major difference, however, is that Apple’s figure refers to its reserve of cash, the government’s value is the amount of spending room it has before reaching an arbitrary debt ceiling. Apple now has the highest market value of any private company in the world. Apple once had more cash in the bank than the US Treasury had money to spend.Apple Inc. is sitting at $416.6 billion. Exxon-Mobile is second at $400.4 billion. Apple has more than 300 stores in 11 countries, and its retail division has become a hugely important part of the company's business, selling millions of iPods, Macs, iPhones, and iPads.
  10. 10. Recommendations:- Scale up its production capabilities. Every time Apple releases a hot new gadget, customers can't get it. This is a consequence of Apple's legendarily precise just-in-time manufacturing system. Apple never wants to make more devices than it will sell, so it ramps up manufacturing in lock step with demand. That reduces its inventory costs and thus boosts its profit, but Apple's production is still too slow to keep up with instant spikes in demand. Is it possible for Apple to build products any faster than it does now? If money is no object, sure: It could set up factories in many different countries and it could invest in next-generation production capabilities that might pump out iPhones even faster (for instance, robotic assembly lines, which have the added benefit of not raising any concerns about factory conditions).
  11. 11. Bibliography 1. http://en.wikipedia.org/wiki/Apple_Inc. 2. http://www.forbes.com/companies/apple/ 3. http://www.strategicmanagementinsight.com/swot- analyses/apple-swot-analysis.html Books: 1.Steve Jobs by Walter Isaacson

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